Especially foryou jewllers

Topics: Accounts receivable, Balance sheet, Accounting software Pages: 9 (2224 words) Published: June 18, 2015

Especially for You Jewelers
Name: Sabbir Imam Jan
Strayer University
Submitted on: 03/19/15

Suggest at least five (5) expected business benefits that Especially for You Jewelers Company might derive from a new system. Provide a rationale for your suggestions. The use of the new system by Especially for You Jewelers will allow the company to access the information system and generate all types of information like balance sheets, performance reports, asset values and invoices. Some of the features of the new system have libraries consisting of standard reports that can guide in the preparation of financial data. Another advantage of the use of the new system is that it can be customized to fit the specific needs of the company in handling financial data. The new system also allows for the access of information at many access points in an organization or company thus enhancing the sharing of information between several departments of the company. Adoptions of the new system will automate many of the tasks of the financial accountant like replacing paperwork with electronic storage of data (USAID, 2008). Propose at least five (5) system capabilities for the company. Provide a rationale for your proposals. Having analyzed the situation at Especially for You Jewelers, I have to the conclusion that the company management should consider putting in place various system capabilities. The first one is Control accounts are an account in the nominal ledger in which a record is kept of the total value of numbers of similar but individual items. This account is used for the trade account receivable and trade account payables. A receivable control account is an account in which records are kept of transactions involving receivables in total. The money that an individual or any organizations owes another individual or organization for goods received or services already provided and enjoyed, but not yet paid for accordingly. The total calculated on this account at any particular time represents the amount due to the firm by its customers All organizations conducting business activities and recording the transactions in the accounts receivable account has written invoices sent the consumers of their products, or those parties who received the service, this particular invoice is a representation of a legal obligation for the customer to pay for the services received or the goods bought, the invoice has full details about the type of product, both the quality and quantity in details and the agreed upon price of a particular product and any other terms of sale agreed upon by the seller and the buyer. Payments are then to be made within the first sixty days The accounts receivables are regarded as assets of the firm as they are future payments the firm will be compensated for in exchange of the goods sold or the services provided. When recording the amount a customer owes the organization, the total of the amount is recorded on the debit of the accounts receivables as it is regarded as that which belongs to the company and once the debt is paid the amount is recorded in the credit side and the account is balanced. These accounts pose a major challenge to management as they can turn out to be liabilities when the customers fail to pay. All those expense will in turn fall to the company. At time, there are legal processes to be followed before the seller receives payment of their goods or services that increase the cost incurred by the selling organization. More that often there are instances when the buyer returns some good that by being default, such goods are not paid for, and only heavy losses can be counted by the selling organization. The second system is the customer folio. Posting charges in the customer’s folio is the process of recording and analyzing charges and payments made by the guests. This acts with the effect of either increasing the assets and the liabilities of a hotel or decreasing their...
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